Monday 5 August 2019 7:53 am

Just Eat and agree terms on £8.3bn merger

Just Eat and merger partner have agreed terms on a $10bn (£8.3bn) merger, valuing the former’s shares at 731p.

However, that figure falls below the 736p figure shares hit at the close of London Stock Exchange trading last Friday, raising the possibility that a rival bidder could emerge.

Read more: Just Eat profits plunge 98 per cent on delivery investment

The boards of both companies confirmed they support the deal this morning, with Just Eat shareholders set to receive 0.09744 new shares for each of their shares.

Just Eat shareholders will own approximately 52.2 per cent of the combined company’s share capital, the firms said.

The pair have also agreed a name – Just Eat

“The Just Eat Board and management board believe that the combination has compelling strategic logic and represents an attractive opportunity for both companies to build on the strong individual platforms of Just Eat and,” the companies told investors.

Dutch delivery firm said it is prepared to pay 731p per share for Just Eat, a 15 per cent premium on Just Eat’s closing share price on 26 July, a day before the deal was agreed.

Read more: Just Eat share price jumps as it agrees key terms in huge merger

However, since then shares have shot up to 736p as investors prepared to cash in on the merger.

Just Eat and said the tie-up would result in one of the world’s biggest online food delivery firms, with a combined 355m orders worth €7.3bn last year.